Reasons Why Business Owners Sell

These days, when people notice a business for sale, they assume the business is failing. Most new businesses do not make it past the first year and many small businesses are closing because they cannot compete with the lower prices found online. The fact is that most owners selling a business plan on retiring or relocating, which is why they hire brokers to handle the transaction.

Several Aspects

There are so many aspects to placing a business on the market, it is virtually impossible to do it alone. The business has to have a valuation to determine the fair market value. Improvements may have to be made to make the building appealing, and owners may have to build up the business before selling it at an acceptable price. In addition to all that, marketing has to be done to reach potential buyers, documentation has to be gathered, and the building has to be shown.

What Owners Can Do Before Selling

Once an owner begins to think about selling, some actions should take place to make the business more attractive to buyers. Developing a strong leadership among key staff is essential. Buyers do not want a business that will cease to operate smoothly when the owner leaves. Managers who efficiently run departments will appeal to buyers.

Selling off any assets that are not needed or are rarely used will help improve cash flow and present a streamlined business to potential investors and buyers. Prepare a file for review that contains profit and loss statements, tax returns, receipts for expenditures, and information regarding payroll. Buyers will want to see those before making an offer on the business. Job descriptions, policies, procedures, service contracts, inspections of fire extinguishers, and a list of vendors and customers should be readily available in a separate file for reference.

Clean and Organize

Prepare the building. If paint is needed, have the place painted. Replace shelving, add some color, organize the storage space, or remodel the whole building if it is required. Do whatever is necessary to make the physical location shine and sparkle. Spruce up the entrance to make a stunning first impression. Attention to appearances will make a huge difference in the amount of time the business remains on the market, and the original asking price.

Whatever the reasons for selling the business, take proactive steps to maximize financial gains, expedite the sale, and move on with life. A commercial broker can be instrumental in making that happen.